(Please use excel function to answer)

5. Refer to the table containing a companys financial statements below:

Year ending	30-Jun-18	Number of shares on issue			4,344,335
Cash	$6,089,256	Company tax rate			30.00%
Other assets	$84,947,093	Weighted average cost of capital			12.31%	per annum
Debt and liabilities	$25,155,653	Growth rate in FCFs from 2022			5.74%	per annum
Equity (book value)	$65,880,696

Year ending	30-Jun-18	Growth rate	30-Jun-19	30-Jun-20	30-Jun-21	30-Jun-22
Sales revenue	$71,687,735	3.10%	$73,910,055	$76,201,266	$78,563,506	$80,998,974
Operating expenses	$40,219,592	2.70%	$41,305,521	$42,420,770	$43,566,131	$44,742,416
Depreciation	$24,135,494	4.00%	$25,100,914	$26,104,950	$27,149,148	$28,235,114
EBIT	$7,332,649		$7,503,620	$7,675,546	$7,848,227	$8,021,444
Interest paid	$3,675,178	8.10%	$3,972,867	$4,294,670	$4,642,538	$5,018,583
Tax payable	$1,097,241		$1,059,226	$1,014,263	$961,707	$900,858
Net income	$2,560,230		$2,471,527	$2,366,614	$2,243,982	$2,102,002
Capital expenditure	$9,245,312	6.00%	$9,800,031	$10,388,033	$11,011,315	$11,671,993
Increase in working capital	$2,735,756	2.50%	$2,804,150	$2,874,254	$2,946,110	$3,019,763

(a) Work out last year's (year ending 30 June 2018) free cash flows and the projected free cash flows (30 June 2019 30 June 2022) from these extracts from the company's financial statements. (3 marks)

(b) Work out the Terminal Value of the free cash flows in 30 June 2021, using constant growth rate from 2022. (2 marks)

(c) Work out the enterprise value from the free cash flows and the terminal value. (2 marks)

(d) Display the value per share of the equity in this company. (2 marks)

(e) Recalculate the value per share, based on mid-year discounting (with a nominal conversion of the annual discount rate) of the free cash flows. (1 mark)